Buhari orders government agencies to operate unified bank account

10 Aug 2015
Financial Nigeria

Summary

Payment of government funds into the Treasury Single Account is a measure to promote transparency.

Nigerian President Muhammadu Buhari

President Muhammadu Buhari has issued a directive to all Ministries, Departments and Agencies of the Federal Government to commence payment of all government revenues and receipts into the constitutionally-approved Treasury Single Account. This directive was contained in a statement on Sunday by Laolu Akande, the Senior Special Assistant to the Vice President on‎ Media and Publicity.

In fulfilment of a campaign promise to rout out corruption -- and faced with the dire outlook of reduced revenue due to low oil prices -- President Buhari has recently ramped up efforts to plug cracks in the system that lead to loss or leakages of government revenues. Payment of government funds into the TSA is a measure to promote transparency and compliance with sections 80 and 162 of the 1999 Constitution.

Section 80, subsection (1) of the 1999 Constitution of the Federal Republic of Nigeria says: All revenues or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.”

According to the statement by Akande, TSA is “a unified structure of government bank accounts enabling consolidation and optimal utilization of government cash resources." The account is domiciled at the Central Bank of Nigeria. All government receipts and payments are harmonized within the system for transparency and accountability.

“For any agency that is fully or partially self-funding, Sub-Accounts linked to TSA are to be maintained at CBN and the accounting system will be configured to allow them access to funds based on their approved budgetary provisions,” the Senior Special Assistant to the Vice President said.

Government bodies that the Federal Government order applies to include Security and Exchange Commission (SEC), Nigeria Communication Commission (NCC), Federal Airport Authority of Nigeria, (FAAN) and Nigeria Civil Aviation Authority (NCAA). Others include Teaching Hospitals, Medical Centres, Federal Tertiary Institutions, etc.


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